Khaitan Chemicals and Fertilizers Limited
Khaitan Chemicals and Fertilizers Limited Fundamental Analysis
Khaitan Chemicals and Fertilizers Limited (KHAICHEM.NS) shows strong financial fundamentals with a PE ratio of 7.72, profit margin of 7.42%, and ROE of 32.33%. The company generates $9.7B in annual revenue with strong year-over-year growth of 34.40%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 61.9/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze KHAICHEM.NS's fundamental strength across five key dimensions:
Efficiency Score
ExcellentKHAICHEM.NS demonstrates superior asset utilization.
Valuation Score
ExcellentKHAICHEM.NS trades at attractive valuation levels.
Growth Score
ModerateKHAICHEM.NS shows steady but slowing expansion.
Financial Health Score
ModerateKHAICHEM.NS shows balanced financial health with some risks.
Profitability Score
WeakKHAICHEM.NS struggles to sustain strong margins.
Key Financial Metrics
Is KHAICHEM.NS Expensive or Cheap?
P/E Ratio
KHAICHEM.NS trades at 7.72 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, KHAICHEM.NS's PEG of 0.62 indicates potential undervaluation.
Price to Book
The market values Khaitan Chemicals and Fertilizers Limited at 2.09 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.70 times EBITDA. This is generally considered low.
How Well Does KHAICHEM.NS Make Money?
Net Profit Margin
For every $100 in sales, Khaitan Chemicals and Fertilizers Limited keeps $7.42 as profit after all expenses.
Operating Margin
Core operations generate 9.91 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $32.33 in profit for every $100 of shareholder equity.
ROA
Khaitan Chemicals and Fertilizers Limited generates $10.28 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Khaitan Chemicals and Fertilizers Limited generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Khaitan Chemicals and Fertilizers Limited generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
KHAICHEM.NS converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
7.72
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.62
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.09
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.57
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.07
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.40
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.32
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.32
vs 25 benchmark
How KHAICHEM.NS Stacks Against Its Sector Peers
| Metric | KHAICHEM.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 7.72 | 27.18 | Better (Cheaper) |
| ROE | 32.33% | 860.00% | Weak |
| Net Margin | 7.42% | -121084.00% (disorted) | Weak |
| Debt/Equity | 1.07 | 0.41 | Weak (High Leverage) |
| Current Ratio | 1.40 | 4.81 | Neutral |
| ROA | 10.28% | -7173.00% (disorted) | Strong |
KHAICHEM.NS outperforms its industry in 2 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Khaitan Chemicals and Fertilizers Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
59.90%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
-91.00%
Industry Style: Cyclical, Commodity, Value
DecliningFCF CAGR
166.55%
Industry Style: Cyclical, Commodity, Value
High Growth